✅ Experts in Every Investment: Fine Wine

Every Monday, a different expert and area of expertise will be featured to educate readers about our platform's asset selection processes. Splint Invest emphasises the importance of collaborating with expert partners who are leaders in their respective fields to provide informed, specialised investment opportunities.

These experts are selected based on their extensive knowledge, track record, and positive customer feedback. Each expert undergoes a rigorous due diligence process, including a questionnaire focused on reputation, expertise, and track record, along with customer interviews. 

If you missed our introductory blog post, you can refer to it here. 

A common enquiry we receive is, "How can you be experts in so many varied fields?"

✅ The  answer is simple yet powerful: for each category, we collaborate with expert partners who are leaders in their respective domains.

Volume 1: Wine

The world of wine is immense and thrilling, filled with an abundance of wine terms, various styles, numerous grape varieties, and much more to explore and learn about. A wine expert is an individual possessing deep knowledge about wine. This includes the ability to identify various wine styles, understand their aging potential, recognise the distinct regions and grapes, and discern the unique flavour profiles of each wine. Another crucial part of wine expertise is storage know-how. 

Many wine experts start with formal education in viticulture, oenology, or wine business. This can be through university programs, specialised wine schools, or certifications like those from the Wine & Spirit Education Trust (WSET) or the Court of Master Sommeliers. 

Having spent time working in the wine industry is crucial. This might include roles in wine valuation, in wine retail, or in wine distribution. Hands-on experience helps in understanding the nuances of wine production, tasting, and service. 

In this blog post, we are featuring one of our wine experts, Berghaus & Cie. The managing directors hold one of the most prestigious wine certifications in the world, the WSET. They have passed our expert examination due to their ultra high expertise and certifications in wine and have offered us some of the finest and rarest wines there are. 

✅ A trusted expert

Berghaus & Cie. really know their way around wine investments. They specialise exclusively in direct wine investments. Their exclusive clientele includes investment companies, foundations, and private individuals. Their journey in wine began many years ago. Tristan A. Berghaus comes from a British family that is passionate about wine. One of his relatives has been investing in the world's finest wines for decades. Thus, Tristan developed an early interest in exclusive wines and started organising really cool wine tastings. A few years later, he founded Berghaus & Cie. with his business partner Peter Irnich to offer wine as an investment in Germany. Part of his family moved to Bordeaux generations ago and married into a winemaking family. This branch of the family then provided them with their first access to truly investment-worthy wines of France, which they gradually expanded. Access and one’s network is a huge part of the industry. Tristan Berghaus and Peter Irnich both have a certificate from the British Wine & Spirit Education Trust (WSET). 

⭐ Wine ratings and critics, an important pillar of our wine expert partner

Becoming a wine expert involves a combination of formal education, practical experience, and a deep passion for wine. This also means knowing how to carefully read wine criticism.  In the wine world, many consumers look to wine ratings or 'points'  when determining the quality and desirability of a bottle. But what is considered a good wine rating, and do these ratings really matter? 

One of the most popular rating systems is the 100-point scale, mainly influenced by Robert Parker. Wines are rated on a scale from 50 to 100, with higher scores indicating superior quality. Robert Parker, known for his work with the Wine Advocate magazine, introduced this system. He likened the grading to school grades, with 90-100 being an A, 80-90 a B, and so on. Wines rated between 90 and 100 points are considered some of the best in the world.

⭐ Our currently available wine scores an impressive 93 Parker points!  You can still invest in it today by following this link. 

A good wine rating takes into account various factors, including the wine's complexity, balance, depth of flavours, aging potential, and overall enjoyment. It blends objective aspects, such as acidity and tannin structure, with subjective elements, like personal preferences and tasting experiences. External influences, like the serving temperature, foods consumed beforehand, the mood of the reviewer, or even the scent of a nearby person's perfume or cologne, can all impact the perception of the wine. 

How do critics' ratings impact wine investments?

In the realm of wine investment, the influence of a critic like Robert Parker is akin to that of leading financial rating agencies. To draw a parallel, just as a high credit rating from S&P can result in lower interest rates, a strong Parker score can significantly elevate a wine's price due to increased demand. Investors generally seek the top-rated wines, avoiding those with lesser ratings. This is because a high rating from a respected critic like Parker often leads to a surge in the wine's desirability and perceived value. 

Fun fact: Robert Parker was one of the most influential wine journalists and wine critics in the world for several decades. Allegedly, his "nose" (tasting ability) was insured for one million dollars, which is why he was also called "The Million Dollar Nose" or "Wine Pope".

🍷 The investment wine selection process

In selecting their wines, Berghaus & Cie. always look for a great entry price, top critic ratings, and of course, the historical performance of the vineyards. They also consider availability, vintage ratings, and current market trends. 

 🇫🇷 🇮🇹 Regional selection

Berghaus & Cie. have been hugely successful in Champagne and Burgundy investments. In their wine selection, they place great importance on a broad diversification. Therefore, their portfolios also include the best vineyards from Bordeaux and Tuscany, for example. Depending on how the market is performing, they also add wines from the new world and so on. After lesser-known wines significantly increased in value in recent years, Berghaus & Cie. are now realizing that the brand name and fame of a vineyard are counting more again. Therefore, they are particularly careful to include only the very best vineyards in their offerings.

An expert is needed for wine investing 

Generally, our expert views alternative tangible asset investments in this way: It's best done with or through a professional. There are many wines on the market with unclear origins or that are poorly stored. Precise knowledge is extremely important. In the end, everyone who spends a lot of money for the enjoyment of outstanding wines wants the perfect product - from a source that can be trusted and that stores it optimally. Many customers come to Berghaus & Cie. wanting to incorporate their personal wine preferences into their portfolios. Often, these are not so suitable from an investment perspective. Through their open and personal consultation, they ensure that they fully meet the goals of the customer in their wine portfolios.

Ranges of returns on wine investments

The market is growing by an average of about 8 to 9% per year. If one is lucky enough to get access to the rarest treasures, for example through Splint Invest, the returns can be much higher. 

As for Berghaus & Cie., their sales that have taken place so far have been exceptional and have brought in annual returns of about 15% to 20%.

Storage

Most wines have a limited shelf life and can quickly become undrinkable and lose their value if not stored properly at the right temperature, the right position, and under the correct lighting. While it’s well known that fine wine improves with age, in terms of flavour and value, they can also deteriorate if stored in poor conditions. If you are serious about storing wines to mature them to their maximum value, professional storage is key. To maximise the returns from investment wines, it's essential to understand the key aspects of effective wine storage.  All our wines are professionally stored and insured in the most optimal and high security run facilities. 

🇨🇭 Fun fact: One of the largest professional wine storage facilities in the world is located in Geneva, Switzerland. It is said that the Ports Francs storage is home to over 3 million wine bottles. The storage also houses some of the world’s most valuable artworks!